ASSESSMENT OF CREDIT MANAGEMENT IN MICRO FINANCE INSTITUTIONS (A Case Study on Aggar Microfinance Share Company in Wolkite

Abstract

This study was conducted on the title of assessment of credit management in micro finance institutions in Aggar Microfinance Share Company at Wolkite branch with primary objective of examine the credit management on micro finance institution at branch level. In this study both primary and secondary source of data used and the researcher would be used open end and close questionnaires and structure interview to collected data from the employee, customers and management body of the institutions and it used convenience non probability technique to select customers and judgmental technique to select target population among employee and management body of Aggar Microfinance Share Company. And also the researcher used descriptive method of data analyzing. The analyzed of the data revealed that, there is problem in group borrowing methodology, the institution doesn’t collect its credit on specified period, rather they mostly after the due date and also the repayment period is not suitable. Therefore, the institution is advised to create awareness to the customer, about the time value of money and to improve the repayment period.